Statement of Cash Flows-Indirect Method The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is shown as follows: Dec. 31, 2013 Dec. 31, 2012 Assets Cash Accounts receivable (net) Inventories $263,190 95,350 269,150 $246,520 88,540 262,150 101,560 Investments Land Equipment 138,050 296,960 (69,520) $993,180 Accumulated depreciation-equipment Total assets 231,770 (62,500) $868,040 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Dividends payable $179,770 17,880 9,930 53,630 201,620 530,350 $171,000 22,570 7,810 42,530 118,050 506,080 Common stock, $10 par Pald-in capital: Excess of issue price over par-common stock Retained earnings Total liabilities and stockholders' equity $993,180 $868,040 Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: a. The investments were sold for $118,830 cash. b. Equipment and land were acquired for cash. c. There were no disposals of equipment during the year. d. The common stock was issued for cash. e. There was a $65,070 credit to Retained Earnings for net income. f. There was a $40,800 debit to Retained Earnings for cash dividends declared. Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Livers Inc. Statement of Cash Flows For the Year Ended December 31, 20Y3 Cash flows from operating activities: Net Income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Gain on sale of investments Changes in current operating assets and liabilities: Increase in accounts receivable Increase in inventories Increase in accounts payable Decrease in accrued expenses payable 100 DOO D000 II 1 Net cash flow from operating activities Cash flows from investing activities: Cash received from sale of investments Cash paid for purchase of land Cash paid for purchase of equipment Net cash flow used for investing activities Cash flows from financing activities: Cash received from sale of common stock Cash paid for dividends Net cash flow from financing activities Chi sch For the Year Ended December 31, 2093 Cash flows from operating activities: Net Income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Gain on sale of investments Changes in current operating assets and liabilities: Increase in accounts receivable Increase in inventories Increase in accounts payable 0 00 0000 000 Decrease in accrued expenses payable Net cash flow from operating activities Cash flows from investing activities: Cash received from sale of investments Cash paid for purchase of land Cash paid for purchase of equipment Net cash flow used for investing activities Cash flows from financing activities: Cash received from sale of common stock Cash paid for dividends Net cash flow from financing activities Change in cash Cash at the beginning of the year Cash at the end of the year Feedback